how to make money with effective expense reduction & buying better improving … ·...

HOW TO MAKE MONEY WITH

EFFECTIVE EXPENSE REDUCTION & BUYING BETTER

Improving Your Deal Making Skills

Presentation for CMA CLUB FINANCE CONFERENCE

May 2010 www.bigdave.com.au

http://www.bigdave.com.au

www.bigdave.com.au 2

Priority ACTION Who When Cost



Your Business -A Complex Conglomerate

BARPublic, Sports,

Lounge

BOTTLE SHOPRetailing

TABWagering

FUNCTIONSConferences Weddings

GAMING

ACCOMMODATION

FOODCafé, BistroRestaurant

PROMOTIONSSports Events

Poker



FOCUS CATEGORIES STRATEGIES GENERAL • Financial and Sales Measurement & Analysis

• Sales Focus – Targets & Goals • Branding – Be known for something (USP) • Marketplace Positioning • Ambience • First - Do more with what you have

GET MORE CUSTOMERS • Promotional Events – get more customers • Marketing Activities – JV • Signage & Presentation • Publicity & PR • Maximising Buzz & WOM

HIGHER AVG $ SALE • Sales Training - Add On & Up • Merchandising – Sell More

MORE REPEATS • F.L.O.W. Analysis – Customer Experience & Satisfaction • Customer Database – collect names Email or SMS Club news

INCOME FOCUS

SELL MORE

LIFT MARGINS • Sell & Promote High Margin Products • Product Mix – Menu & Offerings

WAGES • Recruit & Select Well • Organisational Clarity - House Rules • Train with Systems • Staff Productivity • Time Management • Leadership, Coaching & High Performance Management

C.O.G.S. • Purchasing - Systems • Bulk Buying / Buying Groups • Control Theft • Reduce Wastage • Menu Design

FIXED COSTS • Negotiation of Rent, Fees, Leases, Agreements, Waste removal

UTILITIES • Regular Maintenance Program

EXPENSE FOCUS

SPEND LESS

REP & MAINT • Maintenance Program • Minimise Damage



Public Hotels (2001 to 2004)

City & NonSuburbs Metro Little 5% to 12.5% Over 12.5%Based Based Gambling of Revenue of revenue

Businesses Businesses Revenue from Gambling from Gambling

1 TOTAL INCOME $1,666,964 $1,645,153 $934,757 $1,704,028 $2,310,5532 Less Cost of Goods Sold 34.37% 54.21% 53.46% 51.65% 44.90%3 Equals GROSS PROFIT 65.63% 45.79% 46.54% 48.35% 55.10%

Less OVERHEADS as %'s of Total Income:4 Advertising, Promotion & incl Group Fees 3.61% 1.35% 1.89% 1.30% 2.32%5 Accounting and Legal Fees 1.04% 0.55% 1.03% 0.64% 0.29%6 Entertainment, Bands 4.04% 0.92% 1.63% 1.26% 1.86%7 All Insurance 1.74% 1.27% 1.41% 1.52% 1.17%8 Interest, Bank Charges etc 1.66% 2.07% 2.35% 1.27% 2.33%9 Rent of Premises 5.58% 5.34% 7.29% 4.66% 4.21%# Other Occupancy Costs 3.31% 3.39% 3.09% 3.38% 3.66%# Other Depreciation, Lease and HP 4.46% 2.26% 2.77% 2.54% 2.88%# Repairs, Maintenance and Replacements 5.08% 1.83% 2.22% 1.74% 3.61%# Staff On Costs 2.85% 1.25% 1.26% 2.03% 1.47%# Telephone and Fax 0.49% 0.67% 0.65% 0.77% 0.49%# Employees' Wages & Salaries 16.50% 11.85% 8.08% 14.87% 15.56%# All Other Expenses 1.88% 1.73% 1.57% 2.44% 1.28%# TOTAL OVERHEADS 52.23% 34.49% 35.23% 38.40% 41.13%

# Equals NET PROFIT (bos*) 13.39% 11.30% 11.31% 9.94% 13.97%

NET PROFIT (bos*) per....# Working Owner $144,727 $115,826 $79,933 $52,262 $243,168# Owner Workhour $68.18 $45.35 $34.72 $22.76 $93.59

TOTAL INCOME per....# Person $178,020 $174,819 $156,028 $170,593 $199,874# $ of Wages # $4.75 $5.04 $4.66 $4.13 $6.16

GAMING COMMISSION per....# Person $28,128 $20,472 $1,482 $12,989 $51,818# $ of Wages # $0.70 $0.64 $0.04 $0.30 $1.63

GROSS PROFIT per....# Person $113,257 $79,348 $70,703 $83,032 $105,888# $ of Wages # $3.08 $2.31 $2.16 $1.98 $3.28

NON PERSONNEL-RELATED OVERHEADS per....# Person $55,120 $35,423 $38,874 $35,861 $44,067# $ of Wages # $1.53 $0.99 $1.13 $0.86 $1.33

PERSONNEL (fte personnel numbers)# Working Owners 1.29 1.75 1.64 2.00 1.31# Bar & Bottle Shop Staff 6.63 4.18 4.26 3.92 5.91# Any Other Staff 2.86 3.43 0.75 4.47 4.70# TOTAL PERSONNEL 10.77 9.35 6.64 10.40 11.92

# Hours Worked per Owner per Year 2223 2735 2794 2668 2510

OTHER INFORMATION# Owners' Equity as % of Total Assets 75.19% 56.55% 56.46% 70.49% 55.82%# Asset Turnover excluding buildings $3.07 $5.02 $3.40 $6.17 $4.36# Stockturn Rate 18.45 13.89 14.96 15.81 13.97# Gaming Commission as a % Total Income 17.03% 9.78% 0.76% 6.94% 26.25%# Trading Hours per Week 97 88 86 91 93# Growth Capacity 2.20% 10.84% 1.25% 11.29% 13.65%

* bos - before owners' salaries and benefits# including owners' notional salary of $15 per hour

Copyright CCH Australia Limited. All Rights Reserved

Average results for firms grouped as indicated



Important KPIs & Ratios• Overall – Wage %, COGS %, Net Profit % • Sales & Revenue - per person, per seat, per sq m• Hotel – Occupancy %, Avg $ Rm Rate, REVPAR• Food – % GP, Avg Check, Table turns, Side Item%• Stock – Shrinkage, Stock turns• Gaming – Rev per machine• Functions – Avg Size, Numbers, Adv Bookings • Assets – ROI• Bottle Shop – Stock Turn, GP%, SPI

TRENDS (CPC) & BENCHMARKING CCH



The Path to Profit

FOOD & DRINK COST

RENT

PRO

FIT

W AGES EXPENSES

Two paths to Profit – Sell More, Spend Less



SMARTER MENU DESIGN

• Market Needs – K.I.S.S.• Item Placement• Style – Font, Colours, Pics• Appropriate Pricing & Margins• Availability & Seasonality• Ease & Method of production• Balance & Complementary Items



DISH NAMES

DESCRIPTIONS PRICE

READABILITY

POSITION ON MENU

Menu Layout to Sell



PRODUCT MARGIN TRAFFIC LIGHT

HIGH $

MARGIN (Green)

MID $

MARGIN (Yellow)

LOW $

MARGIN (Pink)



CONTROL YOUR C.O.G.S.Watch your Spending on Food & Drink• Use Purchasing Systems• Perfect Portion Control• Control Theft & Fraud – How much?• Bulk Buying / Buying Groups• Stock Control & Selection • Monitor & Reduce Wastage



REDUCE WAGES %Improve your Team Productivity• Recruit & Select Better• Fast Induction – ‘90 days to Greatness’• Improve Leadership Skills

Satisfaction, Absenteeism, Staff Turnover • Watch Pay Rates & Use Costed Rosters• Better Time Management• Training with Systems• Develop More Organisational Clarity



MINIMISE WASTE & BREAKAGES

• Breakages - plates, glasses etc• Freebies - Mistakes on Orders• Damage - Equipment• Specials that didn’t sell• Binned Cutlery and Plates!• Sunshine products – Satchets, Doyleys

WATCH THE WASTE!5% = 20x



CUT YOUR EXPENSES• Negotiate your Fixed Costs• Regular Maintenance – Systemise• Minimise Damage – Use Systems• Electricity – Phase Balancing device• Refrigeration – Temp, Seals, Coils• Cooking – Blue not Yellow• Heating – Temp• Chemical Usage



Planned Maintenance Benefits

• Minimize the down time of the equipment• Extend the life of the equipment• Provide budgeted cost for service• Allow a reduction in energy cost• Correct small problems before they become

large expensive problems.• Provide operator safety• Consistent product quality • To be able to offer full menu



8 Tips for Buying better

Reduce Cost of Goods through:1. Buying Groups 2. Know where you are selling what3. Encourage high margin customer purchases4. Staff Clarity and Accountability - Measure5. Frequent Review of Prices vs COGs6. Set a COGs target and review performance7. Negotiate Better

Continue Benchmarking – Regularly comparing performance; – Identifying gaps; – Seek fresh ideas; – Taking action; and – Following up by monitoring progress and reviewing the benefits.



Tips for Supplier Negotiations 1• Bigger Orders (watch Theft/Spoilage)• Guaranteed Minimums• Order by Pack sizes• Off-peak Delivery• Policy for Goods being returned• Strategy for Substitutions• Simplify the order process – no salesperson• Order in advance



Tips for Supplier Negotiations 2 • Is their a discount for faster payment? • Extras for the staff - uniforms, aprons and knick-

knacks. Or Just give us a good price. • Agree to promote the supplier's brand. Be

discreet - What value?• No special gifts or favours for head chefs and

managers (obviously, but put it in writing!) • Use your own equipment - you always end up

paying! • Fixed Supply Arrangements - The Big One:

Give the supplier all your business for an agreed period. This is where major benefits can flow.



Asking is the beginning of receiving. Make sure you don't go to the ocean with a teaspoon. At least take a bucket so the kids won't laugh at you…….

Jim Rohn

There's no scarcity of opportunity to make a living at what you love. There is only a scarcity of resolve to make it happen. Wayne Dyer

Put all excuses aside and remember this: YOU are capable

.Zig Ziglar

Sooner or later, those who win are those who think they can.

Richard Bach

Courage is the greatest of all the virtues. Because if you haven't courage, you may not have an opportunity to use any of the otherrs. Samuel Johnson

The successful person has the habit of doing the things failures don't like to do. They don't like doing them either neces-sarily. But their disliking is subordinated to the strength of their purpose.

E. M. Gray

Only those who risk going too far can possibly find out how far they can go.

S. Eliot

The future belongs to the Askers. The people who confidently and courageously ask for what they want, and if they don’t get it they ask again and again.

Jim Rohn

Of course you should ask politely. Ask Courteously, Ask Expectantly, Ask in a Friendly way! Be persistent and resilient.

Ask for more Ask for Appointments

Ask what their biggest issues are Ask about their future plans

Ask who else they are considering Ask for help when you need it

Ask for more information Ask for References and Referrals

Above all, ASK FOR THE BUSINESS!



HOW TO BE A BETTER DEALMAKER - BUYERS QUESTIONS • Is that your best price? • Can you do any better than that? • Is that the best you can do? • Tell me your best price • What would I have to do to get a better price? • What about a bulk buy price? • How much for cash? • Would that be less expensive if …..? • Could I get a lower price if …?

• Are any specials available? • Are any promotional deals currently on offer? • What is the off-peak price? • Do you know of any way I can get a cheaper price? • “If you include X & Y you have a deal!” • Explain that you’re on a Budget. • “You’ll have to do better than that! • Use uncomfortable SILENCE. • No matter what dollar amount they put out, just state the 5 magic words“That sounds a little

high.” And then you pause and then sit back and wait for their response. Most people become increasingly uncomfortable with silence and will feel compelled to respond. Most likely they will either make a more reasonable request, or they will try to justify their request.

ASK FOR BETTER TERMS - “Can I get better terms?” – “I’d like…” Conditions, Time, Inclusions, Exclusivity, Service, Training Provided, Marketing Help, Extras for the staff – freebies BUYING STRATEGIES

• Ordering - Bigger Orders Order by pack Sizes • Guaranteed Minimums • Policy for return of goods • Strategy for Substitutions • Simplified Order Process – less Salesperson • Order in Advance • Discount for faster payment • Agree to promote their brand – Be Discreet – What value? • Fixed Supply Agreement – All the business for an agreed period.

Know how to negotiate and use these 9 simple steps: 1 – Do your research. 2 – Be nice to the sales person. 3 – Don’t show you are eager to buy. (Play the reluctant buyer) 4 – Spend some time with the sales person. 5 – Act shocked when they tell you their first price. 6 – Use that uncomfortable silence. 7 – Ask for their best price. 8 – Ask how much for cash? 9 – Ask for a little extra and sign the deal.



EVERYTHING’S NEGOTIABLE! Terms of Payment Conditions Time Inclusions Exclusivity Service Training Provided Marketing Help – Co-Promotions Assistance Required e.g. OHS



BUYING BETTER & CUTTING COSTS WORKSHOP – IDEAS SHEET

SUPPLIERS MONEY SAVING IDEAS Beer Suppliers

Alcohol Suppliers

Coffee Supplier

Fresh Fruit & Veg Frozen

General Grocery Supplier (e.g. Bidvest)

Frozen Foods Supplier

Seafood Supplier

Meat / Butcher

Poultry Supplier



Energy – Electricity

Energy – Gas

Telecommunications (Phone services)

Banking - Merchant Fees / Bank fees

Insurance

Advertising & Promotions

Printing

Vending

Gaming equipment

Cutlery & Crockery



Fixtures, Furniture & Equipment

Kitchenware – Pots & Pans

Uniforms, Work & Safety Wear

Office Equipment

Office Supplies

Photocopying / Printing

Packaging

Chemicals

Cleaning services & supplies

Computers & Software



Courier/Freight/Delivery

Postage & Mail

Hygiene Services

Linen Supply – Towels & Sheets

Laundry Services

Bedding – Quilts, Blankets etc

Paper Products - Toilet Paper /Handtowel

Waste Management

Sanitary Services

Knife Sharpening

Maintenance Contracts



Motor Vehicle Service Repair & Fuel

Security Services – Video, Guards etc

Lamp fittings – Globes & Tubes etc

Signage



YOUR OWN NEGOTIATOR’S PROFILE

Your Attitude to TIME <———————————————————————————————————–>

Slow/Deliberate Urgent/Rushed

Your Attitude to INFORMATION <———————————————————————————————————–>

Need lots of Info to decide Don’t need much Info to decide Your Attitude to RISK

<—————————————————————————————————–> High Risk / Gambling Low Risk / Security & Safety Your STRESS TOLERANCE LEVEL

<———————————————————————————————————–> Cope with High Stress Well Prefer Low Stress Environment Your Attitude to MONEY

<———————————————————————————————————–> Relaxed / Spendthrift Tight/ Miserly Your Attitude to BEING LIKED by others

<———————————————————————————————————–> Need to be LIKED by others No Need to be Liked Your Attitude towards OTHER PEOPLE (Strangers)

<———————————————————————————————————–> Cold/ Disengaged Empathetic/Caring Your Attitude towards AUTHORITY FIGURES & RULES

<——————————————————————————————————–> Reckless Disregard Respectful Your INTERPERSONAL SKILL LEVEL

<———————————————————————————————————–> High EQ LOW EQ Your Attitude towards FEAR

<———————————————————————————————————–> Fearless/Courageous Fearful / Afraid Your ASSERTIVENESS LEVEL

<———————————————————————————————————–> Highly Assertive / Dominan Low Assertiveness / Passive Your EMOTIONAL RESPONSE <———————————————————————————————————–> 100% Emotional 100% Logical FILTERS

PRIMARY MODALITY - Visual Auditory Kinesthetic PRIMARY INTEREST - People Place Things Activity Information

MATCHER <——————————————————–> MISMATCHER



THE NEGOTIATORS MINDSET WHAT MAKES A GOOD NEGOTIATOR? DESIRABLE TRAITS • Patience • Persistence & Endurance • Courage • Healthy Skepticism • High Expectations • Good Business sense • Honesty • Charm / Charisma • Optimism & Resilience • Organized & Eye for Detail • View of Big Picture • People Sense

HABITS OF SKILLED NEGOTIATORS • Consider twice as many options and outcomes • Spend three times as much attention on finding common ground • Spend more than twice as much time on long-term issues as short-term issues • Set range objectives rather than single point objectives • Discuss each issue independently of other issues Dealing with common Obstacles to agreement Not their idea – build on your opponents ideas, ask for constructive criticism and offer your op-ponent a choice. Unmet interests – find & satisfy unmet needs Fear of losing face – help opponent back away without backing down. Too much too fast – guide opponent step by step, reassuring no agreement need be consid-ered till everything is on the table. Best Alternative To the Negotiated Agreement (BATNA) What drives your limit? Your alternative or BATNA. So, find out: (i) what you don’t know and (ii) what they know. Then warn them, don’t threaten - Let your opponent know about your BATNA in a way that pro-pels them to the negotiating table, not the battleground. The best general is the one that never fights - Sun Tzu.

EMOTIONS & LOGIC

“I CARE but not that much”

UNDESIRABLE TRAITS • Fear of Conflict • Fear of Failure • Need to be Liked • Low tolerance for Ambiguity (grey) • Weak Interpersonal skills (low EQ) • Belligerence (Anger - Temper) • Impatience – too Eager • Low Self Esteem • Close-mindedness



Negotiating is all about the WHY, not the WHAT The purpose of negotiating is seeing if you can get your interests met through reaching an agreement. Positions are WHAT we want - Interests are WHY we want something Negotiate the WHY….not the WHAT. Aim to find the real NEED not the WANT Find the REAL NEEDS - Maslow’s Hierarchy of Needs. NEGOTIATION GAME PLAN PREPARATION – Find Info, Get Skills RELATE – Build Trust & Relationship EXPLORE – Interests & Positions (tactics!) Prioritize & Find Range PROPOSAL – Preferably In Writing ALTERNATIVES – Find other Options RE-NEGOTIATE – Bargain & Problem Solve EXTRACT & confirm the Details SIX COMMON NEGOTIATION MISTAKES James Sebenius writes in Harvard Business Review - April 2001 about the six common mistakes made by experienced negotiators. They frequently leave money on the table, deadlock, damage relationships or allow conflict to spiral. Mistake 1. Neglecting the other side’s problem. Don’t focus on your problem exclusively. Solve the other side’s problem as the means to solving your own.

Mistake 2. Letting price bulldoze other interests. While price is important in most deals, other things count. These include the ongoing relationship, the ‘spirit of the deal’, a straightforward and fair dealing process and the interests of all stakeholders.

Mistake 3. Letting positions drive out interests. Bargaining positions are only the surface game; the real action occurs when we probe behind positions for the full set of interests at stake.

Mistake 4. Searching too hard for common ground. The most frequently overlooked sources of value in negotiation arise from a lack of understanding about the differences between parties.

Mistake 5. Neglecting BATNAs. The deal should always be assessed against a well communicated ‘Better Alternative To the Negotiated Agreement’. Knowing the BATNA of both sides is key.

Mistake 6. Failing to correct for skewed vision. Being too committed to your own point of view or having partisan perceptions can inhibit your ability to understand the other side. ALWAYS KNOW YOUR OUTCOME What are your LIMITS? • Like to Have? • Intend to Have? • Must Have? • Information Collection • Timing & Time available • Scenario - Who’s got the Power?



ROGER DAWSON ET AL’s BIG LIST of NEGOTIATING TACTICS & TRICKS PRESSURE TACTICS • Trade Off • Positioning for Acceptance • Power Play • The Fait Accompli • The Funny Money gambit • Decoy - The Red Herring • Relationship Hostage • Refusing to Negotiate Roger Dawson’s NEGOTIATION BODY LANGUAGE SIGNALS • A smoker lights up: "I'm relaxed, ready to get down to business" • Man unbuttons his jacket: same signal as "a" • Fast blinking: "I'm very alert" or "I'm lying" or "I'm discomforted", etc. • Tilted head, knuckles under chin: "I'm interested" • Head held straight and/or chin in heel of hand: "I'm bored" • Tug at ear: "I want to hear more" • Scratching head: "I'm uncomfortable with the discussion" • Steepling of fingers: "I'm supremely confident" • Hand on back of neck, or finger under collar: "I'm annoyed" • Fiddling with glasses or pipe: "I need more time" • Object in mouth: "I need more nourishment" • Eyeglasses taken off, set down on table: "I'm shutting you off" CONVERSATIONAL CLUES • Statements that mean just the opposite ("In my humble opinion...") • Throwaways that precede major announcements ("By the way," "As you're aware") • Legitimizers ("Honestly," "Frankly,") • Justifiers ("I'll try") • Erasers ("But," "However,") • Deceptions ("I'm just a country boy...") • Preparers ("I don't want to intrude, but...") • Exaggerators ("This is very embarrassing...") • Trial balloons ("Off the top of my head...") WHERE TO SIT IN A NEGOTIATION Sit on the left of your client - they will trust you more if they can see what you write. • When you’re negotiating with two people: sit where you can watch both. • When you have two people on your team: sit apart so you “speak with two different

voices.” • When you have a large group opposing their small group: keep your group together for

power. • When they have a large group opposing your small group: intermingle to diffuse their power

TRICKS & GAMBITS • Printed Word Technique • Higher Authority • Splitting the Difference • Good Guy/Bad Guy • Excessive Demands • Take it or Leave It • Take Away • The Puppy Dog Close • Blaming / Shifting Burden

NEGOTIATING TACTICS • The Flinch • The Vise technique • The Withdrawn Offer • The Nibble • The Hot Potato • Reluctant Buyer / Seller • Higher Authority Gambit • The Set-Aside Technique for

avoiding impasse • The Want-It-All technique



You need to decide YOUR own RULES for Negotia-tion NEGOTIATING BASICS • Know your Values and decide your Ethics • Always Aim for “Win/Win Negotiating” • Know that different people want different things &

have different Hot Buttons • Always maintain your “Walk Away Power” • Remember: “Lose the Battle – Win the War” • Learn as much as you can to prepare for the nego-

tiation. • Watch out for a negotiator who needs "higher au-

thority" approval. • Use the "He who cares least wins" theory. • Look for the bad guy-good guy negotiation strategy. • Avoid an auction situation. COMMUNICATING • Ask Great Questions • Discover Values - “What’s really important to you

about ..” • Listen More • Watch for sudden changes in body language, rather

than just the body language itself. • Never use offensive or off-color language to make a

point. One’s respect is lost when it occurs. • Avoid negotiating on the phone ( you can’t read

your opponent’s body language). • Limit information – Don’t be a blabber mouth! • Present both sides of the issue and • Deliver Bad news early and quickly • Use humour, Jokes & Anecdotes to build rapport • Use Stories to change behaviour OFFERS • Never say “Yes” to the first offer. • Make your offers low but flexible • Never narrow negotiations down to just one issue. • Do not draw a line in the sand. There are no ultima-

tums. • Position opponents for easy acceptance • Always be the one who writes the contract • There is no such thing as a “deal breaker.” • Can use Time limited offers – Available til you leave

today. Offer alternatives – different Options • Offer a “face saver” for ethnic negotiators – “peel

the onion”.

THE BIG LIST of RULES & PRINCIPLES FOR NEGOTIATING

PRICE • Don’t be the first to name a Price • Price is not always all-important • Don’t discount your price unilaterally • Change the price, change the package - No uni-

lateral concessions TEAMS • Preparation is critical when negotiating as a

team • Make sure you control those on your own negoti-

ating team. • If negotiating against a team – move your chair

away from the table to see everyone • Call a coffee break and discuss things 1 on 1

with the key decision maker • Stand up and stand near the boss TIME • Never reveal it if you have a deadline • The person under the greatest time pressure

generally loses in negotiations • The Value principle. ( the value of services di-

minishes rapidly after the services have been performed).

• Watch out for the non-stop negotiator. CONCESSIONS • Never be the one to offer to split the difference”.

Get your opponent to make the offer to you. • Make a big deal of any concession you make,

and get a counter-concession for doing so. • 80% of concessions are made in the last 20% of

the time - so don’t “leave details” til later. • Use the power of the Printed Word • Own up to any major gains • Use test concessions • Downplay benefits to you of any concession

gained • Slice your concessions into small pieces and

turn them into Tradeables.

THE WALK AWAY! Rule To be a successful negotiator, you must be able to walk away from a negotiation without a deal – Remember - A “deal of the decade”

comes along nearly every week.. A “deal of the century” about once a

month.



The 40 Most Common Mistakes in Negotiation 1. Failing to prepare effectively for negotiation. 2. Underestimating your own power. 3. Assuming the other party knows your weaknesses and strengths. 4. Being intimidated by the status of the person with whom you are negotiating. 5. Concentrating on your problems rather than those of the other party. 6. Forgetting the other side has things to gain from agreement as well as yourself. 7. Making assumptions about what the other side wants. 8. Having low aspirations for yourself. 9. Giving too much credence to time deadlines set by the other side. 10. Assuming the other side is aware of the short and long-term benefits of reaching agreement. 11. Being intimidated by rules set by the other side. 12. Misunderstanding tactics used by the other side. 13. Talking too much. 14. Failing to listen effectively. 15. Believing everything the other side says about you, your service, your competition etc 16. Being forced into discussing price too early in the negotiation. 17. Revealing your “hand” too early. 18. Aiming too low with your opening bid. 19. Accepting the first offer. 20. Giving away concessions for nothing. 21. Conceding an important issue too quickly. 22. Making concessions too easily and raising the other sides’ expectations. 23. Feeling guilty about asking for a concession. 24. Making concessions before knowing all the other sides’ demands. 25. Failing to make concessions conditional on final agreement being reached. 26. Making concessions of equal size to those on offer. 27. Paying too much attention to ‘price’ rather than ‘value’. 28. Discussing issues for which you are not prepared. 29. Being inflexible. 30. Losing sight of the overall agreement when deadlock is reached over minor issues. 31. Responding to a high demand with a counter offer instead of challenging the validity of the high demand. 32. Assuming deadlock means agreement is not possible. 33. Feeling deadlock is only unpleasant for you and not the other party. 34. Trying to be liked during the final stages. 35. Bluffing without having a strategy ready should your bluff be called. 36. Taking things personally. 37. Offering to ‘split the difference’. 38. Being intimidated by “This is my final offer!” 39. Not preparing ‘Head Office’ that you may need to walk away. 40. Carrying out a ‘post-mortem’ with the other side present. 41. Celebrating ‘a great win’ in front of your opponent



MONEY SAVING IDEAS



RECOMMENDED HOSPITALITY BOOKS BASIC FINANCIAL LITERACY • Where’s the money gone? by Andee Sellman • Understanding the Bottom Line by Career Press • Cashflow and How to Improve It by Leon Hopkins • Understanding Accounts by Couldery and Coghlan • Retail Australia – Understanding the Financials of Your Business by H. Zawatzky GENERAL BUSINESS FINANCIAL STRATEGY • Financial Freedom for Your Business by Morris Kaplan • What rich people know and desperately want to keep a secret by Brian Sher HOSPITALITY ACCOUNTING • Introductory Accounting for the Hospitality Industry by Garry Dick FRAUD & CONTROL • Internal Control & Fraud Prevention in Hospitality Operations by Kevin Baker EXPENSE REDUCTION • 489 Ways to Cut Costs in Restaurants, Cafes, Hotels, Clubs & Bars – a free e-book by Ken Burgin (www.profitablehospitality.com.au ) • 313 Ways to slash your Business Overheads by Gary Long • A Manager’s Guide to Creative Cost Cutting – 181 ways to build the bottom line by David Young PURCHASING • Purchasing for the Hospitality Industry by Jaksa Kivela PROFIT ENHANCEMENT • Cost Management for Profitable Food and Beverage Operations by Morrison & Ruys • Pump Up Your Profits by Pencom MENU PLANNING • How Much? How Many? – The Complete Guide to Hospitality and Functions Logistics by Stephen Ashley • Menu Planning for the Hospitality Industry by Jaksa Kivela FOOD & BEVERAGE SELLING • Service that Sells by Pencom • Pump Up Your Profits by Pencom • 52 Best Incentives, Competitions and Rewards by Pencom • Pour It On – 52 ways to maximize you bar profits by Pencom • Work Smarter – Not Harder – The Service that Sells Workbook by Pencom F&B SERVICE SKILLS - WAITING & BAR • The Waiters Handbook by Graham Brown and Karen Hepner • The Professional Waiter (4th Ed) by Peter Howard and Jeffery Puckeridge • The Professional Bar Attendant (4th Ed) by Peter Howard and Jeffery Puckeridge • How to Make Megabucks Waiting Tables by Leslie N Lewis


http://www.profitablehospitality.com.au


SALES COMMUNICATION SKILLS • Easy Peasey by Alan Pease – Great Simple Book on People Skills • Communication in Tourism and Hospitality by Lynne Van Der Wagen • GUEST SERVICE Achieving Excellence in Guest Service by Josephine Ive FRONT OFFICE - ACCOMMODATION • Principles of Front Office Operation by Baker, Bradley & Huyton • Hospitality Scams, Cheats, Crooks and Thieves by Max Hitchins HOSPITALITY MARKETING • 365 Marketing Ideas for the Hospitality, Tourism and Travel Industries by Hitchins • Hospitality Marketing(UK) by David Bowie and Francis Buttle • Marketing without Advertising by Nolo Publishing E-MARKETING • Internet Marketing in Hospitality (UK) by Barbara Cox & William Koelzer • Hospitality Marketing in the E-Commerce Age (UK) by Neil Wearne and Kevin Baker TOURISM MARKETING • Marketing Australian Travel & Tourism by John Richardson RESTAURANT MARKETING • Slam Dunk Marketing (USA) by Phil Roberts and Christopher O’Donnell • Restaurant Marketing manual by Joel Cohen - www.restaurantmarketing.com HOSPITALITY MANAGEMENT • The Food & Beverage Manager by Paul Cullen • Hands on Hospitality by Max Hitchins HOSPITALTY HR - TEAM MANAGEMENT • Turn the Tables on Turnover – 52 ways to find, Hire and Keep the Best Hospitality Employees by Pencom • All for One – 52 ways to build a winning team by Pencom • Supervision and Leadership in Tourism and Hospitality by Lynne Van Der Wagen and Christine Davies MOTEL MANAGEMENT • Running a Country Motel by Des Bennett TOURISM MANAGEMENT • The Business of Nature Based Tourism by Bob McKercher • Tourism Management by Neil Leiper CLUBS • Club Management in Australia by Hing, Breen & Weeks GAMING • 101 Explosive Ideas for Gaming Operators by Max Hitchins


http://www.restaurantmarketing.com


ABOUT DAVID STAUGHTON B.Sc(Hons) AFAIM David Staughton is a Professional speaker based in Melbourne. Experience David has over 20 years experience in a broad range of industries including Mining, Retail, Hospitality, Travel & Tourism and Consulting. He’s been passionate about business since starting work in the family-owned hardware store at age six. David is a qualified Geologist and worked for five of Australia’s largest Mining Companies. He left to start his own hospitality business and ‘become a Millionaire by age 30’. In 15 years he grew a multi-business empire in Victoria. In 2001 he successfully sold his busi-nesses and has been helping business owners and their teams ever since. He has repeatedly shown businesses how to re-engage their staff, find more customers and significantly increase their sales & profits all year round. 5 REASONS WHY YOU SHOULD CHOOSE DAVE

1. Award-Winning Small Business Owner & Operator 2. Australia’s Expert on “Selling Off-peak” – improving sales in quiet, slow and tough times 3. Eight years Consulting Experience with SMEs 4. Self made Millionaire & Serial Entrepreneur – has started seven Businesses 5. Contributing Author of two best-selling books for Small Business

SALES TOPICS • How to Make More Sales in Tough & Quiet Times • Serve & Sell – Help your Front line staff to sell more • Making the Most of every Sale - (Add On Selling) • Pricing for Profit - How to stop discounting, charge

more and get what you’re really worth! STAFF TOPICS • How to Find, Keep & Inspire the Best Staff • Turning Grumpy into Great – How to Re-Engage &

Empower Your Staff • Tactics for Tough Times – How to make the most of

your Time, Team & Turnover STRATEGIC/FUTURE TOPICS • Big Ideas changing the Future of Business • Understanding Future Customers – How to make more

money in tomorrow’s marketplace • Webmarketing for Business - How to make more sales

from the Web SKILLS IMPROVEMENT • Live a more Effective Life! – Turning your Ideas into

Action (World Class Time/Life Skills) • How to Pitch and Present like a Pro – developing World

Class Presentation Skills • Pricing & Promoting your Services - How to be a Rain-

maker and turn more prospects into clients The above topics are available as tailored presentations: • Keynotes at Conferences & Meetings • Half and Full day Workshops • Strategic Retreat & Conference Facilitation TEAM BUILDING WORKSHOPS (IN HOUSE) Team Tune Up, Team Building Toolkit & Team Tactics David can provide a full range of user-friendly practical workbooks on a wide range of topics relevant to small business owners.

www.bigdave.com.au M: 0408 375100

"Big Dave" Staughton is a scientist, author and award-winning businessman who makes business easier. Whether you sell by phone, by email, face to face or via the web, Big Dave can show you how to get the most from your team, your prospects and your existing customers.

"Big Dave" Staughton inspires people with his passion, energy and enthusiasm. A Successful businessman, he is a walking library of

business case studies, quotes and real life stories.”



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